What is Single Entity Coverage?

Single entity coverage is a type of insurance policy that covers all real estate in a condominium, including both the common areas shared by all the owners as well as the individual units.

Key points to remember

  • Single entity coverage is an insurance policy that covers both common areas shared by all owners as well as individual units.
  • Single entity coverage insures what was originally part of the condo when it was built.
  • It does not apply to personal belongings of individual condominium residents or improvements to the condominium unit.

Single-entity coverage is used for condominiums (or condos), a type of residential property in which certain common elements, such as the entrance or light fixtures, are used by all residents of the building, while other other items are only used by the condominium unit. owner.

How Single Entity Coverage Works

Single entity coverage is important for owner-occupied multi-family dwellings because residents of condominium units cannot be asked to purchase an insurance policy that covers items shared by other condominium owners, such as an entrance or a light fixture in a hallway. The condominium the association buys this insurance policy, using the fees charged to the co-owners for maintenance.

A deductible will often apply to property insured in the association’s policy. The deductible can be calculated on a case-by-case basis or applied separately to each building or dwelling. There may be different deductibles for different types of goods covered. One aspect of the deductible to consider is how it will be dealt with the unit owner. Unless the corporation’s documents state who is responsible, the corporation or the unit owner, the corporation may need to adopt a policy outlining the circumstances under which a unit owner would be responsible for paying the franchise.

What single-entity coverage protects

In addition to protecting property shared by all condo owners, single entity coverage also covers property inside individual condo units. This includes appliances and anything that is not considered a structural improvement or addition. Essentially, it covers what was originally part of the condo when it was built. It does not apply to personal belongings (such as computers and clothing) of condominium residents and does not apply to improvements made to the condominium unit.

This is a type of semi-limited coverage that a syndicate of co-owners can choose to purchase and is described in the rules and pacts. This type of insurance is the most common Home Insurance purchased by syndicates of co-ownership.

Rather than choosing coverage from a single entity, a condominium corporation may instead choose to purchase cover bare walls or all-inclusive coverage. Bare wall coverage only applies to items found in shared areas of the building, such as light fixtures, walls, and floors, and is the most limited type of condominium coverage. All-inclusive coverage includes the features of single-entity coverage, but also covers upgrades.

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